NEW DELHI: To help domestic aviation sector tide over the huge operational challenges posed by the West Asia crisis, the Aviation Ministry on Wednesday announced a 25% cut in the present landing and parking charges for domestic carriers for a period of three months.
It will be implemented with immediate effect. This relief measures will offer airlines a cumulative relief of Rs 400 crore, said an official release.
Aviation Minister Ram Mohan Naidu said, "With the ultimate aim of supporting airlines and, in turn, passengers, airfare increases are being further contained by reducing landing and parking charges levied by airport operators".
"This step is part of the Ministry’s overall effort to keep the aviation sector stable during this volatile period and to ensure ease of flying for passengers. This is a significant intervention to provide relief to airlines grappling with increasing operational costs," he added.
The Ministry has issued directions to the Airports Economic Regulatory Authority of India (AERA) to reduce the existing charges by 25% in all major airports under its purview. The Airports Authority of India (AAI) has also been directed to effect the reduction in all non-major airports under its jurisdiction.
"The AERA has issued an order to this effect, stating that any under-recovery by individual airports shall be adjusted during tariff determination in the next control period of five years," the release said.
These measures are expected to reduce landing and parking charges payable by airlines at major airports during the three-month period by approximately ₹400 crore, the release specified.
The Centre had recently announced the passing of only a partial Aviation Turbine Fuel (ATF) price hike, capping the increase for airlines at 25% only for domestic operations. Globally the sharp spike in crude prices has led to a disproportionate rise in ATF prices, the release added.
"This step was aimed at enabling carriers to manage operational costs while ensuring that the benefits of affordable air travel continue to reach passengers. Now, as part of a multi-layered response to these unprecedented challenges, the Ministry has taken another significant decision to reduce landing and parking charges for domestic carriers by 25% for a period of three months," Naidu said.
While ATF costs globally have risen by more than 100%, we have passed on only a moderate increase capped at 25%, Naidu added.
"The Ministry of Civil Aviation is keeping a close watch on the evolving situation, and further necessary measures will be taken to ensure the viability of air operations, as well as safe and affordable air travel for passengers," he said.